New research has revealed how much sellers are likely to have made when it comes to the price appreciation of their property across each region throughout the nation.
The new research which looked at years of ownership, the original average purchase price and the current average sale price and the percentage increase, and then adjusted this figure to account for inflation, has uncovered some interesting statistics.
Wales Tops the Table as The Most Profitable Region
The research shows a distinct correlation between the length of time people own their home and the highest property appreciations meaning that homeowners who live in their properties the longest can expect to see the highest price rises when they come to sell their properties.
For example, in Wales, the region that secured the largest property value percentage increases out of all the British regions, people typically own their property for the longest period of time, staying for an average of 22.6 years. The research calculated that the average Welsh homeowner selling now would have purchased their home in February 1999 paying £48,455, that’s £85,875 once adjusted for inflation. With the average house price across Wales now standing at £196,216, that makes for a 128 per cent increase (+£110,341).
The North West, where the average length of homeownership is 20 years came second in the price appreciation hotspot table. Since 2001, the average house price in the region has increased by 97 per cent, which amounts to £100,029.
The North West was closely followed by Yorkshire and the Humber where people generally stay in their homes for 20 years with the research showing an inflation-adjusted increase of £90,778, that’s 89 per cent.
The average length of homeownership in the West Midlands and the North East was slightly longer at 20.2 and 21.3 years respectively. However, house price growth hasn’t been quite as buoyant as Wales and the North West and, after adjusting for inflation, the research shows that the average property has increased by 79 per cent in the West Midlands and 78 per cent in the North East.
London Enjoys Largest Monetary Uplift
In London, the average homeowner was shown to own their home for 19.4 years meaning had they purchased their properties back in April 2002, they would have seen a price increase of 71 per cent once adjusting for inflation. However, while the Capital has only seen the sixth-largest percentage increase of all British regions, it has enjoyed the largest monetary uplift with those looking to sell now some £211,000 better off compared to when they bought their home.
Scotland was the only region to have seen negative movement when it came to property price growth. With an average length of homeownership of 14.5 years, it would have cost £129,092 to get on the ladder in March 2007. However, once adjusting for inflation, the research shows this cost is actually £183,168 and with the current average property costing £180,334, Scottish home sellers will have seen a 2 per cent drop in the value of their home.
Selling your home in 2022? This is how much you’re likely to have made
Adam Kamani, CEO and Co-Founder of property portal MoveStreets which conducted the research commented: “With the festive period now behind us, many homeowners will be getting their house in order with the view to selling in 2022. Over the last year, we’ve seen some explosive rates of house price growth and so those now entering the market are likely to be doing so at a considerably higher sum than the price they originally purchased their home for.
While there are always fears that we may see a repeat of previous house price drops, the cyclical nature of the property market means that there’s a good chance you’ll have seen an increase by the time you do come to sell.”
Have you seen this kind of property price appreciation in homes you have owned for a long time?